In the modern world, people leave their jobs for a variety of reasons. Sometimes this can equally benefit a person and an organization. However, more often when the employee walks away from their position, the company is left to pick up the pieces. Having a high turnover rate can have a negative affect on revenue and profitability. Read on to find out five side effects of having a high turnover rate.
A Decrease in Morale and Motivation
Having a revolving door in your workplace can have a negative impact on a team’s morale. When colleagues move on it can be like losing a friend, as well as doubling
the workload in the office. Employees that stay will have to take on extra work until a replacement is found, as well as having more responsibility with a new member of the
team is settling in. This spiral affect can lead to stress and a decrease in motivation, which will negatively impact a company’s success.
A team that has been together for years know how to make it work. But when employees are constantly coming and going, this can affect the team dynamics and
productivity in the office. This can lead to team members working independently to get tasks done and a strained office environment, developing resulting in dissatisfied
employees, less productivity and ultimately a higher turnover rate.
Expensive Hiring Proces
Hiring new employees can be costly. The management have to pay for advertising the vacancy, as well as any training and education that comes along with the position.
Constantly investing in new employees that leave after a few months can be viewed as throwing money down the drain when it comes to company spending.
Decrease in Productivity
Without providing a stable working environment, company profits will take a hit. It can take several months for new employees to settle in and this causes disruption to
business and customer service. In addition, management become preoccupied with interviews and recruiting, taking the focus away from how to make the company
Losing Confidence in the Boss
When employees around you are leaving, it can cause you to feel insecure and question what is going wrong. This can lead to a decrease in trust and confidence in
your management. It is also easy for rumors to spread when someone leaves and for this to disrupt other employees and cause a strain in work relationships.
While there can be a number of reasons for high turnover rates, a common problem is down to recruitment and not selecting the best employee for the job. With a staffing agency in Denver, companies can prevent a high turnover rate and make sure they do not suffer from any of these side effects.